National Republican., 1887-05-27

off, the bonds now on deposit are either
"fours" or "four aud ahalf," and are about
equally divided between the two classes.
The flour and halfs," payable in 1891,
are worth In the market to-day 10 per
cent. premium, and the "fours," payable in
1907, are worth 80 per cent. premium.
Assuming that on the 1st Of July-the
beginning Of the next fiscal year--there will
be 800, 100000 Of each of these classes Of
bonds In the treasury ito secure circula-
tlon,n that will represent $50 900, 900 worth
of national bank notes issued by the banks
which have those bonds on deposit.
The government on the Both of April had
in It's vaults s2O5, ,7sS, ,s22 in standard silver
dollars and $4,17l, 1926 in silver bullion uu-
coined. At $2,0O0,000 per month-the
amount now coined of silver dollRrs-there
will be intho vaults on July $4,000, 900
coined and $4,000, 900 in silver bullion. The
silver certificates then issued will probably
amount to $4,000, 900, leaving $15, 900 600
of standard silver dollars in the treasury
unrepresented by silver certificates in the
circulation OF the country-that is the life
blood Of commerce, money-clogged in the
heart-;the treasury-and not circulating
through the arteries Of the commercial
body-the national banks.
The average price paid last year for the
silver bullion which is required to make q
standard dollar was SO Ito cents, and the
cost Of coinage made the cost OF the dollar
SO cents. The coinage of these dollars was
kept to the very lowest limit possible under
the law-that is, $2,000,000 per month, aud
the ''seignorage" or profit from their manu-
facture amounted to S., 100000.
The silver dollar, which contains 4l2l
grains Of silver, with the guarantee Of the
United States, buys as much OF anything
there is for sale In this country as does the
gold dollar Of the United States or of any
other country in the world, notwithstaud
ing the attempts Of monometallsts to place
the silver coin at disadvantage.
Suppose the United States should say to
the national banks, 1--WE have $1,000 900
Of our own bonds belonging to you on de-
posit, which are worth $4,000, 200, and
another 500, 900, which are worth $780,
100000, and we have advanced you $780,
100000 In bank bills on these bonds; we
now propose to deposit with you silver dol
lars to the full amount of the difference
between the 90 cents on the dollar you have
and the market value Of your bonds, thus
making your banks silver repositories for
the circulation OF silver money"
When the banks accept this proposal It
adds s60,000,000 to the circulation, nearly
replacing the deficit made by the retiring
Of the bank notes IN the last eleven months,
and also exhausting within $4,000, 900 the
silver dollars now in the treasury unrepre-
sented in the circulation by silver certif-
Gates.
The government would be perfectly se-
cure In making these deposits, as the ma
tional banks are sound, safe corporations,
hedged in by the banking laws, with paid
up capital stock, and double liability,
which would supplement and add to the
security given by the bonds on deposit.
&. The way would thus be made for the
establishment Of national banks as silver
repositories, using silver dollars, silver GER
tificates, legal tenders, and national bank
notes as the circulating medium, associat-
Ing without prejudice upon par with gold,
and this would compel the coinage Of the
maximum amount Of silver required by the
law, which alone would add to the circu-
lating medium at the rate Of 10000, 900 per
annum.
Congress should be impressed with the
necessity that this growing country needs
expansion Instead Of contraction OF the
urrency, as the increase Of population
alone demands an increase Of circulation
equivalent to s6,OO0,0OO per month.